Freight forwardering powerhouses DSV and Panalpina have agreed the terms and conditions to join forces with a Public Exchange Offer to all Panalpina shareholders.
The DSV offer comprises of 195.8 Swiss Francs for each Panalpina share in a deal worth around $4.6 billion.
It would create one of the largest transport and logistics companies in the globe with revenue of approximately Danish Kroner 118 billion ($17.7 billion) and a workforce of more than 60,000 employees in 90 countries.
On completion of the deal, DSV and Panalpina’s Air & Sea division will be among the largest providers globally, with close to three million containers (TEUs) and more than 1.5 million tonnes of airfreight transported yearly.
Following completion, Danish forwarder SV will propose to its shareholders, at an extraordinary general meeting, to change its name to “DSV Panalpina”.
The Public Exchange Offer already has the support of shareholders representing 69.9 per cent of the registered shares of Panalpina, who have irrevocably agreed to tender their shares into the Public Exchange Offer. This includes Panalpina’s largest shareholder, Ernst Göhner Foundation and Cevian and Artisan.
Panalpina chairman of the board, Peter Ulber said: “In the course of the past weeks, Panalpina’s board of directors and management has been exploring different strategic initiatives and held discussions with DSV about a potential combination. The board of director’s assessment is that the updated proposal of DSV is very attractive.
“It is recognizing the quality of Panalpina’s employees, the company’s strong position as one of the world’s leading providers of supply chain solutions, and its special competencies and know-how in air and ocean freight. The board of directors recommends Panalpina’s shareholders to accept the offer. Talks with Agility have been discontinued.
“We are now looking forward to join forces with DSV and contribute to creating one of the world’s largest transport and logistics companies. Our customers will be able to benefit from a stronger network and service offering as well as new competencies and skills.”
DSV chairman of the board, Kurt Larsen said: “A combination of DSV and Panalpina further strengthens our position as a leading global freight forwarding company. Together, we can present a strong global network and enhanced service offering to our clients, further solidifying our competitive edge in the industry.
“It’s a great match on all parameters. Panalpina is a great company and we’re very excited by this possibility to join forces and to welcome Panalpina’s talented staff.”